Foreclosure Investing - The Pros And Cons Of Investing In Foreclosures

Investing in foreclosures is no doubt one of the best opportunities to make money in today's economy. As with any type of business venture, there are risks involved. Investing in foreclosed remax properties college station offers great opportunity to buy homes significantly under market, but there are some risks such as considerable research, under lying lien problems, long-term carrying costs and several others. If you are willing to take the chance on a property or two you may prosper in the end.
Foreclosed homes for sale college station tx can be purchased at several stages. First is the pre-foreclosure phase, then the auction phase and finally the REO phase each of these presents their own set of pros and cons. Familiarize yourself with each of these different types of foreclosures, weigh the pros and cons for each, you may be able to avoid a costly mistakes and headaches through the process of investing in home foreclosures.
Take a look at the possible pros and cons at the various stages of a foreclosure:
Pre-Foreclosure Phase
This is the stage where the homeowner is still in control of the property. Although the loan is in default and the pressure from the lenders is just beginning. The homeowner is usually in a position to sell the property quickly and avoid the foreclosure process all together. This means hue savings and large potential profits for you.
Pros
20-40% discounts on the estimate value
Low or no down payment, due to the built in equity
Research and inspection opportunities
Sales agreements that are flexible
Cons
Home owner may not be reachable
Fierce competition, many investors are trying to buy these type foreclosures
Time to research documents and court filings
Undisclosed or underlying liens against the property
Auction Phase
Possibly the most profitable stage of a foreclosure. Auctioned remax properties college station usually offer the best potential profit when buying foreclosures. An auctioned property is sold during a public auction to the highest bidder. If you have done you, research these types of properties are sometimes sold way under market value.
Pros
Greater discounts can be as high as 35-50%
Great ROI, return on investment
Greater potential profit
Cons
Property inspection is generally not available
Postponed auctions mean valuable time lost and research wasted
Large down payments that must be paid at the time of auction
Incomplete research can cost you a lot of money
You may not win the auction at all
REO Phase
An REO occurs when the lender retains the property after the auction phase. If the bids are not high, enough during the auto the lender will bid on the property to seize control and resell it themselves. In most case, the property has no value to the lender until the house sells; in this case, the lender is usually motivated to sell the property fast.
Pros
Discounts of 5-18%
Clear title, free of all liens
Back taxes are up to date
Lenders may do the repairs, or offer additional discounts
Cons
Low ROI, return on investment
Research must be very through
Potential for loss in the end
When investing in real estate college station, especially in foreclosures there is great risk involved. While the potential to make a substantial profit in foreclosures you need to make sure that, you do your research and fully understand what your risks are. Properties that offer the greatest profit potential are often times the risky investments.
If you need assistance finding a good real estate investment in College Station, visit here and get in touch with Gordon Pate.

10318 Kemp Rd

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This property has ov er 3500 sq. ft. home with, a detached garage with garage apt., piped working pens, hay barn, and 2,0 00 ft of low bank Brazos River frontage.

4741 Tiffany Park Circle

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Large family home in Copperfield.

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Great Custom! This home features tile in living, dining, kitchen, and both bathrooms.

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3 bedroom, 2 bath Deacon condo on 2011 Texas A&M bus stop.

Business Rentals

If you are thinking of investing in commercial real estate, consider business rentals.  Business rentals range from storage facilities, office buildings, storefronts and strip malls.  While some commercial real estate investors build business rentals and then act as a property manager, others simply purchase buildings and renovate them so they are suitable for business rentals. 
Commercial real estate college station investing has many facets.  When most people think about commercial real estate investments, they think about giant malls or industrial parks.  Few think of small business rentals that also encompass commercial real estate properties. 
When purchasing a business rental, make sure that there is a lease in place or you have a client in mind who wants to lease the property.  Few people invest in commercial real estate upon speculation as it can be quite risky.  It is financially prudent to seek a sound investment when choosing business rentals.  Business rentals in blighted area are risky at best.  Commercial real estate in a declining area is usually not a good idea.  Location is the most important aspect of any real estate investment. 
Before investing in a piece of commercial real estate, an investor must perform due diligence.  Due diligence with regard to business rentals includes the following:
Ÿ  An inspection of the property to make sure it is structurally sound;
Ÿ  Environmental inspection if required;
Ÿ  Zoning consideration - if you are planning on making a change in the type of business rental, make sure that the current zoning is applicable;
Ÿ  A survey of the property with all easements included;
Ÿ  A title insurance commitment detailing any liens, covenants, restrictions or tax problems recorded against the property.
In addition, make sure you are aware of all the applicable laws in the municipality where the property is located.  You would not want to purchase a piece of property to lease for a tavern if the municipality does not allow liquor.  When considering business rentals, take a look at the surrounding area and see what will work well in the community.
Storage facilities are another example of business rentals.  Companies and individuals use storage facilities to keep items they cannot keep in their office or home.  Business rentals such as storage facilities, make good commercial real estate investments. 
Other business rentals include strip malls, office buildings, office complexes, storefronts and free standing structures.  People invest in business rentals for many different types of reasons, the main one because it is a steady source of income for the investor.  The loan on the property can be paid off by the individual or business renting the property and, if your commercial real estate investment is in a location where the properties appreciate in value, you can earn money years down the road when you sell the property, or you can continue to hold onto the property and gain the income from the business rental. 
Business rentals can be a good solid investment if an investor has knowledge of the real estate college station market, invests in a desirable location, performs proper due diligence and is mindful of what is needed in the area in which the property is located. 
For a complete list of business rentals good for investment click here.